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Brookfield Taking Forest City Private for $11.4B
Brookfield Asset Management is acquiring Forest City Realty Trust in an all-cash deal valued at $11.4 billion, including the assumption of debt. The M&A agreement comes the day after shareholders in another REIT, shopping center owner GGP, approved a takeover by Brookfield Property Partners. It also occurs four months after FCRT concluded a strategic review with a vow to remain a standalone company.
“Forest City has created a high-quality portfolio of operating and development assets over its 100-year history,” said Brian Kingston, CEO of Brookfield Property Group. “We look forward to creating further value in these great assets on behalf of our limited partners.”
The Forest City portfolio includes 6.3 million square feet of Class A office; 2.3 million square feet of life science assets, primarily in Cambridge, MA; 2.2 million square feet of retail space; and 18,500 multifamily units. There are also five large-scale development projects in the New York City metro area, San Francisco, and Washington, DC.
Two shareholders with a combined 14% interest in FCRT, Starboard Value LP and Scopia Capital Management LP, have agreed to vote in favor of the deal at a special meeting of shareholders. The acquisition is expected to close in the fourth quarter of 2018.
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- ◦Sale/Acquisition
